Sales and Use Tax Annotations

Annotation 190.2550

(c) MEASURE OF TAX

190.2550Travel Time—Installing Custom Cabinets. If the cabinets are materials, then the construction contractor is the consumer of the cabinets furnished and installed in the performance of a construction contract. The sale of the materials to the contractor is subject to tax, and the contractor's charges to the customer for furnishing and installing the cabinets, including charges for travel time to and from the job site, are not taxable.

When cabinets are regarded as fixtures under Regulation 1521 (c)(2), the contractor is the retailer of the cabinets. If the contract states the sales price at which the cabinets are sold, and separately states the charge for installation, tax applies only to the sale price. Installation charges may include charges for travel time to and from the job site but only if the sole purpose of the travel is for the installation of the cabinets. 1/21/93.